Don’t look now, but copper is joining the high-flying metals club!
US copper futures soared as much as 17% yesterday, the biggest one-day move since the contract began trading in 1988. Even after giving back about half that gain, copper traded late yesterday at $5.50 per pound. That’s a fresh record high, as you can see in the long-term MoneyShow Chart of the Day here.
Copper Futures (Monthly Chart)
As with other assets in recent months, copper moved thanks to trade and tariff policy. President Trump said he plans to slap a 50% “sectoral” tariff on copper imports into the US. The administration is citing authority granted under Section 232 of the Trade Expansion Act of 1962, which applies to national security risks. Commerce Secretary Howard Lutnick later suggested the copper levy would take effect later this month or in August.
Unlike rare earths, copper is fairly abundant in the US. The country produced 850,000 tons of it last year. But we still rely on imports to meet about 36% of domestic demand – with Chile, Canada, and Mexico the biggest foreign suppliers, according to Bloomberg.
For now, the US Copper Index Fund (CPER) that tracks the price of futures surged right alongside the metal. Mining stock ETFs like the Global X Copper Miners ETF (COPX) and iShares Copper and Metals Mining ETF (ICOP) rose, but by much smaller amounts.
It’s been a banner year for many metals, including precious ones like gold, silver, and platinum. Now the move is broadening out even more – and paying off for investors who have been listening to bullish MoneyShow experts like Brien Lundin, Omar Ayales, Larry McDonald, and others.
